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Management accounting - Assignment Solution

   

Added on  2020-10-22

13 Pages3957 Words346 Views
Management Accounting

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3PART A.......................................................................................................................................3Covered in PPT............................................................................................................................3PART B........................................................................................................................................3TASK 2............................................................................................................................................6(a) Explain Advantage & disadvantage of different type of planning tools which is used forbudgetary control.........................................................................................................................6(b) Analyse different planning tools and it's applications............................................................7(C) Evaluate how organisation system adopt different management accounting system............8(d)Analysis of financial problem in respect of management accounting which lead theorganisation for the success.........................................................................................................9(e)Explain how planning tool solve the financial problem which lead the organisation tosustainable success.......................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONIn business scenario, management accounting is defined as the process of analysing,gathering, recording and reporting of useful financial information that help the internal managerto take valuable decision (Abdel-Kader, 2011). Manager of company makes annual accounts byapplying generally accepted accounting principle that help the outsider stakeholder to gatherrelevant information about companies happing during an accounting year. In general,management accounting has major objective of doing so is to accomplish more benefits bymaking proper use of resources within an organisation. To better understand the concept ofmanagement accounting Airdri company is selected. This company produces designer hand dryerwith best price within Industry. The main aim of this project report is to calculate the net profit using absorption andmarginal costing method, advantages and disadvantage of different types of planning tools thatare beneficial in forecasting budgets and controlling them. Apart from this, the report also showsthat various financial tools are used by company in order to resolve the financial issues.TASK 1PART ACovered in PPTPART BCalculation of Net profit through marginal costing:Marginal Costing MethodParticularYear 1Year 2Year 3Sales70252000028000004200000Less: Marginal costOpening Inventory-192000576000Direct Labour16640000768000816000Direct Material12480000576000612000Variable Expenses208000008000001200000Less: Closing Inventory192000576000144000Marginal cost172800017600003060000Contribution79200010400001140000Fixed indirect production cost640006400064000Selling and Distribution overheads100001050011000

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